Do you feel as if you had been thrown into an ocean of debt with no life preserver? Well, I have some information about a life preserver that could help you – a 0% interest balance transfer credit card. How could this help you? If you have multiple credit cards with high interest rates such as 20% or above, you could transfer them to one of the 0% cards and pay no interest for six or maybe even 18 months. This means that all of the payments you would make during this promotional period would go against your balance, which could help reduce it dramatically before you had to start paying interest again.
Before you rush out looking for one of these cards, there are some things you should know.
What does the fine print say?
Read the fine print carefully so you will know what you’re actually signing up for. The expiration date of your promotional period is the day when you must either pay off the balance or you will have to pay the card’s regular annual percentage rate (APR) from that time going forward. This APR will typically be anywhere from 12% to 24%. Also, be aware that you will have to make monthly minimum payments during your 0% period. And if you don’t do so, you could pay a large late fee or even lose your 0% interest status.
Determine your payments
If you want to get the most out of your 0% interest card, you should sit down and calculate the amount you’ll need to pay monthly in order to eliminate your balance before you have to pay interest again. As an example of this, if you were to have a balance of $1000 and six months’ interest free, it would cost approximately $166 a month to pay off the balance and avoid paying interest.
Shop around
Just as all men are not created equal, neither are 0% interest cards. The first thing you should look for is the card that gives you the most months as this can help you spread your costs. As an example of what I mean, a balance of $1400 would require a payment of $58 per month over 24 months. In comparison, this would cost you $116 over 12 months and over six months it would be $233.
Lookout for fees
When you use the 0% interest credit card for a balance transfer, there will probably be fees involved. These usually are about 3% to 5% of the amount you’ve transferred. So, before you move a huge amount of money, calculate the true costs. Otherwise, the fees you will have to pay could completely negate the reason why you made that transfer to begin with.
Can you really get one?
Actually, the biggest problem of 0% interest balance transfer cards is that you may not be able to get one. As a general rule, you have to have pretty good credit to get one of these cards. If you’re heavily in debt, you may not have that great a credit score and may not qualify for a 0% interest rate card. And even if you do qualify for one of these cards, it may not be that great a solution if you can’t pay off your balance during the card’s promotional period.
Why people choose debt consolidation
These are a couple of the reasons why many people turn to us for debt consolidation. Our consolidation providers have helped thousands of families become debt free in a reasonable amount of time and with an affordable payment plan. In fact, we are so sure we can help you get out of debt in a reasonable amount of time that we offer a 100% satisfaction guarantee. If you would like to know more about how we do debt consolidation and why it might make sense for you, call our toll-free number today